Notice of Proposed Changes to the EEO-1 Reporting Requirements to Collect Pay Data

Notice of Proposed Changes to the EEO-1 Reporting Requirements to Collect Pay Data

The following information is taken from the EEOC

The EEOC collects workforce data from employers with more than 100 employees (lower thresholds apply to federal contractors). Employers meeting the reporting thresholds have a legal obligation to provide the data; it is not voluntary. The data is collected using the EEOCreports below and is used for a variety of purposes including enforcement, self-assessment by employers, and research. Each of the reports collects data about gender and race/ethnicity by some type of job grouping. This information is shared with other authorized federal agencies in order to avoid duplicate collection of data and reduce the burden placed on employers. Although the data is confidential, aggregated data is available to the public.

Q&A: EEOC Proposal to Collect Pay Data on EEO-1

These Questions and Answers explain Equal Employment Opportunity Commission’s (EEOC’s or Commission’s) proposal to collect data about employees’ pay on the Employer Information Report (EEO-1) for employers with 100 or more employees starting in 2017. The EEO-1 is a well-established, annual report. Every year by September 30th, most federal contractors and other private employers (with at least 100 employees) tally and report their employee numbers for one pay period by job category and then by sex, race, and ethnicity (Hispanic or Latino). The current proposal would build on the existing reporting structure to collect from employers the number of workers within 12 specified pay bands.

This pay data collection proposal expands on and replaces an earlier plan by the Department of Labor (DOL) to collect similar information from federal contractors. The pay data would help the EEOC and the Office of Federal Contract Compliance Programs (OFCCP) at DOL improve enforcement of federal pay discrimination laws and support employers’ voluntary compliance with those laws.  Employers would continue to submit the EEO-1 to the Joint Reporting Committee at EEOC, which would process the data and share it with OFCCP.

Here is an example of the proposed EEO-1 form.

For an overview of the EEO-1 Pay Data Collection Proposal, please click on the link below:

Q&A: EEO-1

EEO-1 Reports and Surveys

EEO-1 REPORTS AND SURVEYS

Proposed Revision to the EEO-1 Report

The proposed revision to the EEO-1 report will have two components:

  1. It will collect the same data that is currently gathered, and
  2. It will collect data on employees’ W-2 earnings and hours worked.

Starting in September 2017, employers with 100 or more employees would submit data for both components.  Government contractors with 50 to 99 employees would only submit data on Component 1.

EEOC Pay Bands for Reporting W-2 Data

The EEOC proposed pay bands for reporting W-2 data are designed to maintain employee anonymity.  The W-2 data will be aggregated in 12 pay bands for the 10 EEO-1 categories.

  • Employers would tabulate and report the number of employees whose W-2 earnings for the prior 12 months fell within each pay band.
    • For example, an employer would report on the EEO-1 that it employs 10 African American men who are Craft Workers in the second pay band ($19,240-$24,439).
  • The pay bands track the 12 pay bands used by the Bureau of Labor Statistics in the Occupation Employment Statistics survey:

(1) $19,239 and under;
(2) $19,240 – $24,439;
(3) $24,440 – $30,679;
(4) $30,680 – $38,999;
(5) $39,000 – $49,919;
(6) $49,920 – $62,919;
(7) $62,920 – $80,079;
(8) $80,080 – $101,919;
(9) $101,920 – $128,959;
(10) $128,960 – $163,799;
(11) $163,800 – $207,999; and
(12) $208,000 and over.

We will keep you updated on any additional proposals, changes or updated forms and/or reports.

Questions? Let’s Talk.

The Human Resources Experts at FosterThomas HR are here to help with any questions you might have regarding this information. We invite you to bookmark our HR Blog to ensure that you don’t miss out on any important updates.

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About the Author

FosterThomas is a leading professional services company that provides solutions in the areas of Human Resources Consulting and Outsourcing, HR Staffing, Outsourced Recruiting, Employee Benefits Brokerage, Payroll Implementation and Services, HR for Government Contractors, Business Insurance, HR Compliance and Risk Management. We help organizations by providing solutions designed with a focus on cost containment strategies and increasing HR efficiency. FosterThomas HR Consulting was established in 1993 with offices in Annapolis, Maryland (Corporate), McLean, Virginia and Raleigh, North Carolina. Today, FosterThomas occupies a unique position as a full service provider of HR services.

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